Critical Survey: The Pennant Group (NASDAQ:PNTG) and biote (NASDAQ:BTMD)

biote (NASDAQ:BTMD) and The Pennant Group (NASDAQ:PNTG) are both small-cap healthcare companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, analyst recommendations, profitability, institutional ownership, risk, dividends and earnings.

Profitability

This table compares biote and The Pennant Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
biote	3.19%	-22.33%	12.10%
The Pennant Group	2.93%	10.33%	4.20%

Insider & Institutional Ownership

21.7% of biote shares are held by institutional investors. Comparatively, 85.9% of The Pennant Group shares are held by institutional investors. 32.4% of biote shares are held by insiders. Comparatively, 6.9% of The Pennant Group shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for biote and The Pennant Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
biote	1	1	1	1	2.50
The Pennant Group	0	1	6	0	2.86

biote currently has a consensus price target of $2.50, suggesting a potential upside of 134.96%. The Pennant Group has a consensus price target of $42.00, suggesting a potential upside of 3.08%. Given biote’s higher probable upside, equities analysts plainly believe biote is more favorable than The Pennant Group.

Valuation & Earnings

This table compares biote and The Pennant Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
biote	$183.53 million	0.21	$27.05 million	$0.11	9.67
The Pennant Group	$947.71 million	1.50	$29.58 million	$0.90	45.27

The Pennant Group has higher revenue and earnings than biote. biote is trading at a lower price-to-earnings ratio than The Pennant Group, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

biote has a beta of 1.69, indicating that its share price is 69% more volatile than the S&P 500. Comparatively, The Pennant Group has a beta of 1.25, indicating that its share price is 25% more volatile than the S&P 500.

Summary

The Pennant Group beats biote on 9 of the 15 factors compared between the two stocks.

About biote

biote Corp. operates in practice-building business within the hormone optimization space. It trains physicians and nurse practitioners in hormone optimization using bioidentical hormone replacement pellet therapy in men and women experiencing hormonal imbalance. The company offers Biote Method, a comprehensive end-to-end practice building platform that provides Biote-certified practitioners with the components developed for practitioners in the hormone optimization space comprising Biote Method education, training, and certification services; practice management software that allows Biote-certified practitioners to order, track, and manage hormone optimization product inventory and other administrative requirements; inventory management software to monitor pellet inventory; and information regarding available hormone replacement therapy products, as well as digital and point-of-care marketing support. It also sells dietary supplements under the Biote brand; and sterile pellet insertion kits that is used with hormone optimization therapies for male and female. The company was founded in 2012 and is headquartered in Irving, Texas.

About The Pennant Group

The Pennant Group, Inc. provides healthcare services in the United States. It operates in two segments, Home Health and Hospice Services, and Senior Living Services. The company offers home health services, including clinical services, such as nursing, speech, occupational and physical therapy, medical social work, and home health aide services; and hospice services comprising clinical care, education, and counseling services for the physical, spiritual, and psychosocial needs of terminally ill patients and their families. It also provides senior living services, such as residential accommodations, activities, meals, housekeeping, and assistance in the activities of daily living to seniors who are independent or who require some support. The company operates home health, hospice, and home care agencies, as well as senior living communities throughout Arizona, California, Colorado, Idaho, Montana, Nevada, Oklahoma, Oregon, Texas, Utah, Washington, Wisconsin, and Wyoming. The Pennant Group, Inc. was incorporated in 2019 and is headquartered in Eagle, Idaho.